S&P 500 Index Futures (SPX)


The S&P 500 Futures contract is made up of the top 500 corporations in the United States. Buying and selling this commodity allows investors to get exposure to one of the largest sectors of the economy--the industrial sector.

More About S&P 500 Index Futures (SPX)

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Currently trading S&P 500 futures
Difference between the SPX and the S&P 500
SPX futures symbol
Definition
Other information about S&P 500 Index Futures (SPX)


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Currently trading S&P 500 futures


S&P 500 Index futures are stocks that represent a potential return on an S&P 500 index fund. These stocks are traded in advance to predict what the future market will be like, and to make a profit from these predictions. This is done by purchasing stocks when they are low-risk and selling them when they are high-risk. By buying stocks at their lowest price and selling them at their highest, investors can make massive monetary gains. These gains are determined with the Option S&P 500 index future prices.


 
 

Difference between the SPX and the S&P 500


The S&P 500 Index is a market-capitalization weighted index based on the S&P 500. It's designed to be a broad measure of stock market performance and to serve as a benchmark for the US equity market. The components included in the index are determined by S&P Dow Jones Indices, according to how they fit into indexes based on assets, industry groupings, and other criteria. The S&P 500 futures are standardized contracts traded on the CME that track the S&P 500 Index. They enable you to trade or hedge the broader market, which has a high degree of correlation with the stock market as a whole. Both live prices and historical data can be used to create useful trading strategies.

 

Definition


  • es SPX is a narrow-based security index futures contract based on the S&P 500 Index and traded on the CME. SPX futures are designed for sophisticated investors to gain efficient, risk-controlled exposure to the S&P 500 Index.
  • SPX is a US stock index of 500 stocks that can be bought and sold based on the future value of this index. Essentially, if you think the S&P 500 will go up, you buy an index future. If you think it will go down, then you sell an SPX future. It uses all the stocks in the S&P 500 index.

SPX futures symbol

The S&P 500 (or "SPX") is the most commonly referenced benchmark for U.S. equities and world stock market performance. The Philadelphia Stock Exchange (the exchange on which SPX futures trade) has selected "SPX" as its ticker symbol for its index futures contracts. The symbol for SPX futures, the standardized contract on the E-mini S&P 500 future contract, is $ES.
 
  • The S&P 500 Index Futures (SPX) can be traded with three different option contracts that include the Standard, Mini and Tick. The Standard contract works just like stocks where buyers and sellers are trading in 100 share blocks. The mini contract for the SPX is only 25 shares per contract making it easier for investors to get into the market. With each SPX futures trade, an option is also created on the same side of the transaction but not in a quantity of 100 or 1,000 but actually 576 options exits so traders can choose how much leverage they want to use at first.
  • The S&P 500 futures contract is a near-term futures contract based on the S&P 500 stock market index. The S&P 500 stock market index measures the value of 500 of the largest publicly traded U.S. companies. The core component for this market is chosen by Standard and Poor's, a financial services company that also created the index. If a trader expects that this index will rise in price, he can purchase an S&P 500 futures contract which will give him the right to buy 100 shares from someone who owns those shares today at a pre-determined date in the future. For example, if his expectation comes true, he can then sell those 100 shares at a higher price and make a profit.